The Washington Report
March 6, 2024
Note to Subscribers
While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Executive
President Signs Interim Funding Bill Into Law
On March 1, 2024, President Biden signed into law the Extension of Continuing Appropriations and Other Matters Act, 2024 (H.R. 7463). Both chambers of Congress approved the legislation on February 29. The stopgap measure averts a partial federal government shutdown by extending funding from some government departments through March 8 and other services and agencies through March 22. During the interim, Congress will have the opportunity to consider at least six outstanding spending bills.
The full text of the law is available here.
SOTU Address Scheduled for March 7
President Biden is scheduled to deliver his annual State of the Union (SOTU) address on March 7, 2024.
President Expected to Release 2025 Fiscal Budget Request to Congress on March 11
President Biden is scheduled to release his 2025 fiscal budget request to Congress on March 11. Passage of the complete budget is unlikely, as proposals are typically intended as a framework for legislative discussion.
Health
HHS Receives Counteroffers From Drug Companies in Response to Inflation Reduction Act; Releases ASPE Data on Rural Health
On March 4, 2024, the Department of Health and Human Services (HHS) announced that all manufacturers participating in the first cycle of Medicare drug price negotiations have responded with counteroffers. As part of the Inflation Reduction Act, HHS sent the initial offers on February 1. According to HHS, “Negotiations will continue over the next several months. If HHS and a participating manufacturer agree on a maximum fair price by the end of the negotiation period, those new negotiated prices will be published by September 1, 2024, and take effect beginning in 2026.” On the same day, HHS’ Office of the Assistant Secretary for Planning and Evaluation (ASPE) released a Fact Sheet detailing the projected impact of the Inflation Reduction Act on lowering drug costs for those Medicare Part D enrollees who live in rural areas.
The news release is available here.
The ASPE Fact Sheet covering rural health is available here.
CMS Issues Final Guidance on Medicare Prescription Drug Plan; Releases ICR
On February 29, 2024, HHS’ Centers for Medicare & Medicaid Services (CMS) released the final part one guidance for the new Medicare Prescription Payment Plan, as part of implementation of the Inflation Reduction Act. The Medicare Prescription Payment Plan, which begins in 2025, will provide individuals with Medicare prescription drug coverage (Medicare Part D) the option to pay out-of-pocket costs in monthly payments spread out over the year rather than requiring they pay in full.
The final part one guidance (which considered public comments received in response to the draft part one guidance released on August 21, 2023), focuses on outlining the necessary operational requirements for Medicare Part D plan sponsors. The guidance addresses topics such as identifying Medicare Part D enrollees likely to benefit from the program, the opt-in process for Part D enrollees, program participant protections, and the data collection needed to evaluate the program. The final part one guidance also requires Part D sponsors to notify a pharmacy to provide information on the program for anyone who meets a $600 out-of-pocket threshold based on a single prescription at the point-of-sale. This required notification is in addition to the communications that will be provided to people with Medicare Part D before and during the coverage year, as is outlined in the draft part two guidance for the program published on February 15, 2024. The guidance also finalizes the requirement that Part D sponsors must process election requests within 24 hours during the plan year.
On the same day, CMS also released an Information Collection Request (ICR) for the Medicare Prescription Payment Plan, which includes model materials for Medicare Part D plan sponsors to use when communicating to Part D enrollees about the program. Comments on this ICR are due by April 29, 2024. Additionally, the draft part two guidance is open for comment until March 16, 2024. Please refer to the resource links for specific details and provisions.
The news release is available here.
The Fact Sheet on the final part one guidance for the Medicare Prescription Payment Plan is available here.
For the ICR for the Medicare Prescription Payment Plan model plan materials, please see the link available here.
The draft part two guidance Fact Sheet is available here.
The updated implementation timeline for the Medicare Prescription Payment Plan is available here.